·c/: . .: .. · ) ·::, ·,.Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 Page 3 of 12 Page 10...

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C.ase 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 Page ID #:1

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UNITED STATES DISTRICT COURT

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FOR THE CENTRAL DISTRICT OF.CALIFORNIA;

January · 2015 Grand Jury· . . . · .

UNITED STATES OF AMERICA, · CR : N~. , · .. . ·c R 1 ~ _~ .·.o._ q ~-s. : ... ·· ~· _:1,1,_ -·

Plaintif f, · 12

v.

·siMON HONG, 14· aka . "Seong Wciok Hong,".

15 Defendant.

· 16

17

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19 The Gra·nd Jury charges:

.. I N - D T c·· T- M E · N T ... · .-. · • · · · · --- -- ____: - __:;_ - ·

[18 U. S.C. § 1347: Health Ca~e Fraud; 42 u.s.c~ § 1320~- · .. 7b {b) (1) (A} :' Ille·gal Remunerations for :, Health· Care . Referrals; . is · ~ .:U; S ;C . · § 1o2sA(a) (1) ' : A:ggrav~tect Identity Theft; 18 U.p ·; C, ' § 2{b) ·:·· causing an Act to be Dorie) ,

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·.·:-; -.

~ ... : .. -- .

20 COUNTS ONE THROUGH EIGHT

21 [18 u.s.c. §§ 1347, 2(b))

22 A . INTRODUCTORY ALLEGATIONS

23 At all times relevan~ to this Indictment:

24 Defendant

25 1. Defendant SIMON HONG, also known as ( "aka") "Seong Wook

26 Hong" ("defendant HONG"), was a resident of Brea, California, within

27 the Central District of California .

28

Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 Page 10#:2

1 2 . Beginning in or about May -2009 and · continuing th:to4ghin or

2 about 'November · 2013, defendant HONG · owned, operated, and cont·rolled . . . . . . . . . . . .

3 Hong's Medical Management, Inc : . ( "Hong'. s Medi cai") , . CJV!H Pri3.C t i cie .·. .. · · . - . . - . , •

4 solution ( "CMH. Practice":-) , and HK practice .and SQlut'i on, · Iric . : ~: ( "HK. · ' ·r , '

5 Practice") ( collecti ~ely, "Hong's Companies") , all california

6 corp·orations, · which were · lo.cated· at yari~us 'sit_~s ip L()s. A~~-~le_,s. .. ::and·: ·

.7. o~ange· : counties, within the ceh.tral Dist'X·ict of California·;:_·· , ·:

. 8 ·. 3. . . Beginning in ·or about , May 2,9.09_ and · continui'ng thr~:ni~h - iii. . o r .· . ' . - · . . - ..

9 about _November 2013, de-fendant HONG ~ 1easecf, · operated··, ; a:;ci:· ~6-ritX:bll~d .' . ' . . ·. . . . . . . - . .- . . .• . . . .. . . :' ·' . . . .·. ~ -· . ·: ·. . . ·. . :

. 16 .. t:iirii~s. io.cated l n . Wal,rii.lt , . C~lif'orn'ia,,- 'Los"· An~_ele~ -; . CalTfor~i~,~ ,' a~4 .-T.o __ · __ rr __ ·_a._·n_: ce __ .. J·_-_. __ c_a __ l __ i_f .. _o'rn ___ .:i.a _ _ .(·: 11 t' - i''· ''H "' , . . ·c/:_. .: .. · ") ... ·::, ·,. -L .. ' :·_;: .. ·1_,·: ___ _

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. co _ ___ ec __ 1, ve __ y : _ ong __ s _ __ .:~.nJ. qs _ , ··_ln . qs .- .1Ulg,~ .e$ __ _ ... . . :. ~, .;_ .. ·. ' ·-· -·- ·.- -·· . . .;. ~ -- -'-- . ·-- . ~ ., . __ ,. -..... , . . -~ ~ ... ;.!·':. : .... ·: __ .:_ __ . . .

and Orang~ ~ounties, within the Certtral Distri~t of C~lifornia: .. ·. ;.·\

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Co-Schemers : ·-.

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4. Co- schemer Ma.r lon Songco was the president of :Reh~b .:

15 Dyn~mic.s _; __ . Inc., a · california corporation .( "RE;hab Dyhami~s!' ), -. which - ~ · .. ·. . . .... .' . . ,'. • . . ., . . · . .. . -. ,_, . . , ._ ·: ;:· · · .: '

16 was 1·ocated ·at various sites _ in Los Angeles and· orange · cm:.mti~s; :· ~-; :; · · .. . ,- . ·, '· · . '·. : -

17 ~ithin ~he Central bist~ict of Callf~rnia. · . ' . .

18

. . . .

. 5 , - -Co- schemers J oseff Sale$ ("Sales"-) .and Danr1iel Goy~'na··· ' • .!

19 ( "Goyena") owned, . operated, and controlled Rehab ·Dynamics .a.nd ' RSG : ·'.

20 Rehab, Inc . . ( "RSG"). RSG also was a Caiifornia corporation·, · w1~h

21 locations at various sites in Los Angeles county, with,in th~_ cep.t~~l

22 District of California~

23 6. A ba,nk -account for Rehab Dynam:i,cs -was mai'nta.:i.n.ed at J .. ·1? ._ ·

24 Morgan Chase Bank, N.A ., _with account number ending in 5_G60 (the .

25 "Rehab Dynamics Bank Account"). Bank accounts for RSG were

26 maintained at J . P. Morgan ChaseBank, N.A., with account numbers

27 ending in 5234, 2189, and 2698 (the "RSG Bank Accourits"). -

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Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 Page 10 #:3

1 The Medicare Program

2 7. Medicare was a health ca~e benefit program, ~f~etti~g

3 commerce, that ·provided me~Hcal benefits to indi vidual~s ·. who w"ere over

4 the _age of 65 ·or disabled. Medicare wa~ ad~in{~t~~ed b~ the· c~~ier~ :.

5 for Medicare ·and Medicaid Services ("CMSu), a - federal agency .

6· ·operating. under the. authority of the · united states Depart'mertt of' .... . . . . ..

7 Health and Human ·. se.rv:ices ( "HHSu) .'" · : I ' •. ' ' '

•• 1 • •

.: ..... _. . ··- ,_._ . ·: .-

. 8 8 •

. -;· _.' .. •'! !• . . ~- ! . . . ..

Individuals.: who qualified ~ for- Medicare . benetits·:·W:e:te<'· · ~~~- ·. ·: . . . . '... . . .

. ' .. ~

9 . referr~~ ~ to as Medicare "benefi~iaries.u Eac.h M.ed.:i.ca_re lJ.en~·f.icl.ary

10

. . ·- ·' :_ . :- . ,·

·wa·s .. g.i ~en ~ Heali:b" :Identifi~ation c·ard . con~a{nln~(· a . uniq\.i'e .. ·.

11 ident;Lfica_tiC)I1 _·l}.umber. . L"HICNH r ·' ...... · .. . .. · . .... -·:. .... ,·,.: .. · . ··- . . -: ·:

-. : ·-. .

• _,:., .... _., , :. {_;·:·.··· ··· ... · .,

12 9. Health care providers who provided _medical . se~vices that

13 ~ere reimbursed by Medicare ~ere refe~red to as MediGar~ . "Pr~V~~e~s;u ..

14 10; ·c:Ms contrac.ted with private compani es · to certify ·pr·o.viders ' . . ; ,.

15 for parti_c ipation in the Medicare p:r:ogram and ':lonitor their . ··:· ·. · · .. ·. : ··

lb. compliance with Medicare standards,:· 'to pr.oce~s ~-nd pa}t )la i:(n_s ·,' g.dct· t o .

17 perform program ·safeguard functions, such as ident·ify{ng ~nd · ~ -- - ~· . ·

18 reviewi~g suspect claims .

- . ...

. • . ' • . .

19 11. To obtain reimbursement from Medicare,· a pr~vldel:' ·. hci:~ •. : to . . .

.20 appiy for and obtain a provider . num~er. By signing the provider .. . .. . . ;

21 application, the provid~r agreed to (a) ~bide by Medicare rlile~ and ..

22 regulations and (b) not submit claims to Medicare knowing they were

23 false·or fraudul ent or with deliberate ignorance or reckless

24 di?regard of their truth or falsity .

25 12. If Medicare approved a provider's application, Medicare

26 assigned the provider a Medicare provider number, which enabled the

27 provider to submit claims to Medicare for services rendered to

28 Medicare b eneficiaries .

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Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 Page ID #:4

1 · 13. Medicare reimbursed providers only f or. services, ir1cludirig

2 physical . therapy, that were medically necessary to the treatihe~t of a ·

3 . beneficiary's il lness or injury, we;~~ .pfes.cribed by . a benefic.tary.i.s -. . - ~ .

• 4 physician 'or . a qualified physician's : as.sisb~mt acting uhd~·i .the ':.· '.:;:: . _ .. · :_.. . .,._

· · . 5 supervision of a physician; and were ·provided : i'n . a.c¢orctar1c~ . w'lth\: . '··· ·::·:.: I • • • . •' , -•

6 :. Medicare regulations and gu{del.ine·s ".that go:Verh~d . whet.hEi'£-.: a. ·'· · : ·._.-::. .· .. .. - - ' . ..: . . . . . - ·. . · . •.i. · .

. :, ,. . ~ .

7 ·parti.c\11a~ ·servic~ or. 'product wou1d. be i:-e.iT]lbursed ·.by Med:i.c.~.r.e, ·:· • . • .',,• 'I; . • .,

. · . -·- ··

14 : . . . Medicare . required .th~f phys··~cal .tli~rapy· ,, se'rvices ::'b~ · .· '· .. : .;·.

8 ..

9 . p ·erfo:tmed by (a) a physician; · (b) a phy sical .ther~pi.-st ,. (:'; PT·,;) .,· 6r :-·· -,. . , · . : ..... -·· ... · • ' .·. -., _

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·- ..

;ll ..

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··:~:~1:: :~:~ o:£ P:: ::Y:~~:::a:: ;P::~·~~~~::~t~~P::~~:::~~:e:~{~:~::~at. .• 13

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15.

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immediately· available . to provide· assist~nce and diresd::.i.On : through6ut

th~ time . the· PTA was .performing physical ther.apy seJ::'v{ces . . ·: PhyslCal

·therapy ~ervices provided by aides . or :physical therapy stud.erit.s :· were·.··

riot' reimb'qrsable by .Medicare I . ~egardiess of the . ieyel. : of s'~pervislph .· . ·· ..

17 15. Medicare did not cover acupuncture or reimburse providers ·

18 for ·acupunqture .services . . · Medicare· .did not cover ina~ sages ·u~l~ss . ·

19 they were therapeutic mas·sages provided by a . licen~ed th~r~p.i'st as ·

. . , ...

·, . . . .

20 part of the beneficiary's pl~n of care; .... ...

.21 B. THE SCHEME TO DEFRAUD

22 16. Beginning in or about May 2009, and contiriuinguntil at

23 . ieast in .. o:t . about November 2013, in Los Angeles and Ora.nge . Counties,

24 wi~hin th~ Central District of Califorpia and elsewhere, def$pdant ··

25 HONG, and co-schemers Sales, Go"yena, .and Songco, together with others

26 known and unknown to the Grand Jury, knowingly, willfully, arid with .

27 the intent t o defraud, executed and attempted to execute a scheme and

28 artifice: (1) to detraud a he_alth care benefit program, namely,

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Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 Page _ID #:5

1 Medicare, as . to material matters in connection with the delivery of

2 and payment for health care benefits, items, and services; arid ·(2) to

3 obtain, ·PY means of material false and fraudulent pretenses ·and

4 . representad .. ons and the COn<:'ealment Of ma.terial facts I in COnne .. c .. tio"·n .. 5 with t he delivery of and pay!Tient for healt;h, cc,tre berief~ts, · "items_;: ~ri¢1

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money -~nder, the, .custody and . cont"roic)f Medicare'·. 61 ·'sery.ices, . -·. . . . ' .

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The frat.).dulent scheme operatedf in · sub~tance, in th~· < · · .

:-···.:·_ 8 following manner : . . . . : . ~ .

: -~ . '-~- . ··. . . -- . '\ . ''

:- . :.-- ... g. a .. · Co-schemers Sales, Goyeha 1.' and Songcb pai(;i · H()rtg' .' :s · ... · ·: ·

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Compani~s for . d~fenda.nt" HONG' s.· referr.als ·o·:E .. Nledicare be~~·f :.i.~·iari..~·s: :·\:~ .·. . . . . . ~ .. _ .. ·

. - .. . ~-- :_. .. ·- .. -.--- ·.-··. . ', . . . ... :::- . . .

··-· -. . ... , . .. . l:L . .R~J:ig.b . Dyna.in..i c ::?" .: .and. RSG .·.. . .... . .. ...... -,. . .. . . '·· .. < •.:

12 b-.. . . . . . -.-. .. ... ·, .. -- -- _:_ ... ·- ,.:

Defendant HONG recruited Medicare benedi cia:r:i.'es . t6 · ,,.· ·· . ~ . .

13 Hopg's GJ.ini cs, whicl1 were :Eunded . ~nd .controlled by Hong(s .' Cqmpanies.

14 The Medicare beneficiaries supplied .their Medicare cards,:· Hi eNs,;· · ~nd. ·

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patient info~mationyo Ho~g's Clinics, and. ~~fend~nt. HONG . ;- . :

·. ·':

- :_ ...

. 16 subsequently provided this information to co:... schemers Sal'es, : Goye!la> .· ..

17 · and So~gco at Rehab Dynamics · and RSG .·

18 c . As defendant HONG knew, co.:.schemers · Sales , · Go.Y.~na., ~·nd

19 Songco hired . licensed PTs I many of whom worked . full- tim.e:.·else~here I · .

. 20 to perform only patient evaluations, wi thbut : any .fc::>llow-ui:> treatment 1: . . - ' .. .

21 for Medicare b~neficiarie~ at Hbn~'s Clinics . . . .

As defendant HONG

22 knew, thqse PTs evaluated some, but not all, of these benefic iarie~ .

23 and created plans of physical therapy tieatment for them; ·even ~hou~h

24 many of the~e beneficiaries never rec~iv~d any physical therapy __

25 services.

26 d. While at Hong's Clinics, Med~care benefic iaries often

27 received onl y massages and acupunc ture (ser vices defendant HONG. knew

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1 were not covered by Medicare) from individuals not li~ensed to

2 perform physical therapy. \

3 e. .Defendant ·HONG arid co-schemers Sales, Goyena, anq

4 S.on~90 provided, and caused ~o be provide~, _information · to.· Accubill .;·,.

·Med,ical Bill in~ . services .( ~'Ac~ubill" ) · ; ~ in'c:ludi·ng , the··. na~e~, .· B±cN·s·., · • , , • , • • , : • , I •• · . • • _ _ • •• •• • •• t: '. : .. . · ,' . _; . _1 •• ·: ·, ·' ••

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6· . arid . othe.r patient ' iY1fC?rmat·ion ' oi ''ther M~d.id.q.re be~~ficia;.ie~ . · a:t :Aon$-'· i3

7 Cli~i·cs, a~ ~e-ll · a~ ,falsified records>tli.at mac;le it appea::i :~S·. thb{lgh · ... . . . . . . . . . . ,· ' .. :. . . . :: . ..-- __ , .

8 those ·Medicare bene.ficiaries had recei v.ed .· physical . tperapy .·tr:$:a.t.ments · . -. . . -- . .. . . .: . . . - ~ .. .

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fr9m· sp~Gific" PTs hired

inten<;lirig · that Accub.i)l

;•

by Rehab Dynami6s>and RSG I k~owthg···. and~.:: ; ·> .:··· ·,.;; ·. • • ···- p ~--- .\ _:::(.~ •• ; • ••• :: • • __ • • -. ·: .-i·.: ~~ ..... ::.; :~ ... - .; : .. :~ ' >.- -.: -.

wo'uld use · ·this .'f.:H}:>ified .informat~.on ;to ·:;_·.·:-_·. ···· -- ·· ..

. 1+. ..SlJ.t;JTii t: · fal9e and.' f;ra~du_~~~t .·claims. t.~ ·- Me~_icare:. for -phys,£ca1.: . tb~r~p~.'~:-: :

12 f. As· a ·· result of the claims · submitted by Accubill ·,· Rehab I o • , • • • ,,

·.13 'Dynamics. and RSG received paymept from Meqiqq.re for those . .i'a.l s·~ . &nd .

14 fra:udul.ent physical ·therapy claims; and :t,he payments · wet-e · depos_ited , .. . . . ' . . . . · ..

15 into t ·he Rehab Dynamics and RSG · Bank Accounts, to which . co-s~hemeis: : •. ··~ .

16 ._.Sales,· G_oyena; and Songco had joint access, . and over which th~y · . I .

17 exercised Joint . control ..

18. g . Fr.om the Medicare· pa:.yments deposit'ed into 'th~- ·· Rkha·b:· ·:

19 Dynamics and RSG B·ank ACcounts,· co - schemer-s- Sales, . Goyena, and_ Sortgcc>

20 patd kickbacks to def~ndant HONG for the ~eferral of thes~ Mediciire ·

21 beneficiaries at Hong's C~inics to Rehab Dynamics and RSG . Thos,e

22 kickbacks were approximately 56 percent ·o£ the Medicare payment.s

23 received by Rehab Dynamics and RSG from the submission of the

24 fraudulent claims to Medicare for physical .therapy.

25 h. Between in or about May 2009 and continuing until at

26 least in o r about November 2013, Rehab Dynamics and RSG obtained and

27 received from Medicare , and deposited into the Rehab Dynamics and RSG

28 Bank Accounts, approximately $2,929,775 from false and fraudulent

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Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 Page 10 #:7·

claims submitted to Medicare, primarily for physical therapy, on ·

hehalf of . Medicare beneficiaries at Hong's Clinics -recruited J:?y ·

defendant HONG. Defendant HONG, through Hong's. Companies, rec'eived

a~p_roximately $1-,640,674 of this amount for his participati<:)[l -in ·the

fr~udul"ent scherne ; ·including in particular .for his recr1li ti'ng the . -

Medica;.e ~en~f·i~iarl.es ~o- Hong's Clini~s _· ~~d- ~or' his; p~ovi~ing_: · ;·_ : ._· . . _;

i .riformation to co :.. schemers Sales, Goyena_, ant:I• ·songco., >- f?r- use in ··_·.'.: _ _- . ·, ·.,, ·

crea-ting . and submitting to Medicare ·fraudulent_ claims {of physical

-therapy. .. · . . ·. '· ...

. ~. ·.-: .. ·:. : ~ . : .... '

_ : .. _· _··18: --~·· · on . ·or ·· abo,ut _the ·dates ._ s.et . :Edrth .b_elo.~~ wi t;rd:ri .. ·the :~c~ntrai ___ ,. ' --·· ·. . -· . ' ' .. - : --~ .·.- -·-· .... ·.

District o'f California, and elsewhere, defendant . HONG, · together with ·

others known a nd unknown to : tpe Grand Jury, knowingly and willf-ully ··

executed and at tempted to execute the fraudulent scheme. describe_<i- . _.:: . ..

~bove, l?Y submitting ~nd causi~g to be submitted to Med~car~ . ihe .··

following false and. fraudulent -claims:

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COUNT

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TWO

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FOUR

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FIVE '

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:six. ..

SEVEN -

EIGHT

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DATE CLAIM SUBMITTED 4 / 12 / 2011

6 / 15/ 2011

7/1;2/ 2011

7 / 12/ 2011..

7 / 19 / 2011·

10/4 / 2011

3/14 / 2012

5/10/2012

CLAIM

Claim number 55111.1102316380 for · $80.00 fo·r the~apeutic exer~ise .{9J 1iO) . purp~rtedly prov·ided on or about April .. 1, 2011· .to .. berieficiary B . O. by, physical the~api~t C.P : Claim numb~r 551111166485060 for. $Bo,oo · f or manu~l physical t,herapy · (,97140 l. purpo:ft·~diy .. provided .. on. or. about J\ine:-.; 3 ; .. 2(h.l··: t6 : ' . : ·: . herief.iciary. s ~:s ·; ·by physical · th~rap~·.s.t .J :w. ·_ :

.. Claim number '551111193623250·. for $45 .. 00 for-· theiap_~utit . pro~edure .( 9.711.2 ) .· pu~p~ktedl}l ·. · . prov j_ded on or about Juf}r' 1; 20l], ; lo ' .. ... beiie:ffici~.r:y . B:·. o .. by : physical :. therap_ist E. · .· . :Legaspi . , · . · .. · -_ ·· ' · · · .. -.; ... - .

. . Claim. number . 551ll1193623.22Ci for $40 ~ 00- fqr_ walking training (9.7i16) purported-ly prqvided ·em or a·bout J _tily 6·,- : 2cni- .to - · - ..

- .. ·. -··--· .· _.:·- ·. . . -. - ._ . --- ~ . .... : . .... __ ,;- .. - . : ~;- - -- . - ··-·· .ber:-efic.iary- K. B.: .· by-: ':physi~a:l: tperap1st E~ .. .. Legaspi ... · · · · .. . . Claim number 551111200487750: for .$45 -. oo for ... therapeuti'c procedure .( 97112) purportedly · pro~lded Dn or about Jul~ i3\ .: 201 l . to ben~ftciary . J. K. #:1 by physical the·rapist . .. •. . . . . E.· Legaspi . . . . Claim number 551111277629230 for $:a . .o · .. oo· for th~rapeutic. ex~rti·$~e ( 97110) p~rp·o~~·~·diy ·: . provid~d · ort or about. September 26,. '·.2o1i to beneficiary J~ S . by. physical ' th~rapisi J . W; Cl a i m number 551912074182540 . ~or - $_:4s ~· oo ·for ... ·· therapeutic . pr.C?cedure (97112 ) purportedlY .. provided ·on or about Mp.rch 7, 2012·.- to · . -heneficip.ry P .. M. by physical therapi·s·t E . . Legaspi . ·· Claim numb~r- 551812i3118218.0 for. $.40_. 00 for manual phys.ical t herapy (97140.) p·urportedly __ provided on or about April 26, 2012 · to beneficiary J , K. #2 by physical therapist E. Legaspi ..

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Case 2:16-cr-00038-DOC Document 1 Fi led 01/27/16 of 12 Page ID #:9

1 COUNTS NINE THROUGH SEVENTEEN

2 [42 U.S . C. § 1320a-7b(b) (1) (A) ]

3 19. The Grand Jury hereby repeats and realleges paragrap~s i .

4 through 15 and 17 of this Indictment as if fully set forth herein. I . .

..

5 2 o. On or about the dates . set forth below, in Los Arige·les-: _·.

" 6 County, with~rt the· Central D~stii~t of California, · and .~ls~wh~r~~ " •' .. .. ' . ' •

. . · 7· ·defendant . ~ONG;· t:sgether. with · others knovm:_ arid ·u_nknown · tO" the .. c;!.c:~;nd

·• I

8 ·· ~ury~ . knowingl~ and willt~lly solicited ·and received re~~ne~ati¢ri, . '

9 namely ; · checks payable .. in the approximate ·. Cj.mounts set . forth -be ;Low;-

10 drawn on the Rehab Dynamics Bank Account and the RSG B?-n'k · Aqc6~nts; ' -·

in~ __ re:ur? fo_r,_- i~_~erring indivi_?_uals _ ~-o Rehfi~~ Dy~~rrlic~_: ~rtd- -RS~ . fo;r~ ·

~hysical the~apy- :telat.ed services I for which . payment COl..ild be: made in

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13 whole . and. in .. part urider a Fe;!deral heaith care progrc;tm, . namely~ _

14 Medicare:

15 . . ' •'

16 COUNT

17 NINE

18 •·

19 TEN ' ·

20

21 ELEVEN

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23 TWELVE

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25 THIRTEEN

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.. ·· DATE .,

3/15/2011 -·

4 /26/2011

5/11/2011 ~·

7/26/2011

10 / 10 / 2011

,.

·,_ : CHECK

Chebk number 1308,_ drawn on the: RSG Bank Accounts, in the amount o~ $3, 6 59 . 17, payable . to "Hong' s Medi"ca"L Check number 1647, drawn on th~ .

Rehab Dynamics Bank Account·;. __ :in the amount of $10,074.68, ~~yabie to Hong's Medical , · ·· · · Check number 1318, drawn on the RSG Bank Accounts, in the amount of $2,184.25, payable to Hong's Medical Check number 1725, drawrt bn the Rehab Dynamics Bank Account, in the amourit of~ _$9,~72.83, payable to Hong's Medical· Check number 1786, drawn on the Rehab Dynamics Bank Account , in the amount of $10,119.84, payable to Hong's Medical

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Case 2:16-cr-00038-DOC Document 1 Filed 01/27/16 of 12 · Page ID #:10

FOURTEEN 1 / 24 / 2012

FIFTEEN 5 / 24 ( 2012

SIXA'EEN . 10/3/2012

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SEVENTEEN 6 / 11/ 2013

·.· ' ' ' ··.· . .. ~ . .

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:·~ .

Check number 1879, drawn o~ _ the Rehap Dynamics Bank Account, 1n the amount of $13,139.73, _ ~ayable· to HK Practice ' . Check number 1982, drawn on the ':: Reh~b· Dynamics. Bank Acco~nt, · ih:: _th_~ amount of $4~708 · .43, ~~yabl~ to. HK ~ ~ Practice . · · · .-- · .. ·

Check: number 208i, diawn · on the : Rehab Dynamics Bar:Ik . Acz:coun,t,,- .l:il,._ ·the _:-, amount . of $12,393.71, payable . t(/ HK Practice. . . . · ~ · .. ·.

Check number · 2549, drawn-.. on ·the _ Rehab Dynamics - Bank Accou~t; -.- in . th~.-amount- of . $6; 560 .10; payabie · to ·HK:-.,_, ·· Practi~e · · _ ·· · · · · · · · · ; - · :·_. '· . .

... ..

. . : . - . ·.

·· •..

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1 COUNTS EIGHTEEN AND NINETEEN

2 [18 u.s.c. §§ 1028A(a) (1), 2 (b) J

3 21. -The Grand Jury hereby repeats and reallege$ paragraphs 1 .

4 through 15 and 17 of _this_ Indictment. as if fully set fort'h herein: -·

5 - . 22. On or about _ the dates : set ·forth bel_ow, i -n L~s A~g_eles. · -· : -·: • • • • •·• •• -.·-. , 1 .• :

,--

6 - c:;6~rity; . within th~ ~ Central District . of California, -defendant .HONG ~-. . . . . ·. . .

7 t-~g~ther v/it:h otJ:le~s . known ·artd unknown to ,t.he · Gra~d jur~, _kliowirig_l; · '.•.

·a transferred, possessed! anq. used, . and . willfully caused to• b~ . ; . . - . . -·:. ' . .·:.

·9 , transf:erred , · poss~ssed, and us·ed, without _lawful authority; means of . - .--

- 10 idemtifi-cation of other person's, namely, the- names 'and HlCNs- of 'the- ·: . •. .

11 - _·0~~~\c~.r.~ 1J~T1~_fic;Laries _icjent:iJ~I=~ _belolfi ,-· during _ and • in _:reia~~-?r<to -_ ._., _ . _

12 f~iony ·· violations - of Title 18 I United-. States Code'·- Section i:34 7; . 'as · . . :

13 cbarged in th~ related c9unts of the Indictment identifi~d beLow.

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1 COUNT DATE BENEFICIARY (HICN)

2 EIGHTEEN 4/12/2011 B . 0 . ( xxxxx8 9 57 B)

3 NINETEEN 5 / 10 /2012 J.K . #2(xxxxx4168A)

4 A TRUE BILL

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6 /~1 7 Foreperson

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9 EILEEN M. DECKER

10 United States Attorney

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LAWRENCE S . MIDDLETON Assistant United States Attorney Chief, Criminal Division

GEORGE S. CARDONA Assistant Uni ted States Attorney Chief, Major Frauds Section

STEPHEN A. CAZARES Assistant Un i ted Stat es Attorney Deputy Chief, Major Frauds Section

BYRON J. MCLAIN Assistant United States Attorney Major Frauds Section

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RELATED COUNT OF INDICTMENT COUNT ONE COUNT EIGHT

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Case 2:16-cr-00038-DOC Document 84 Fi led 10/19/16 Page 1 of 9 Page ID #:642

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

SOUTHERN DIVISION

FII.Ell ru:H I\. t·.s. u•~ nucrcm·K I

10/ 19/16 I n :..,,·IL\I. IJISTIUC."T OJ" C.\IJt'ORSI.\

D\": U. Golrz ln::l'l "fY

UNITE D STATES OF AMERICA , CASE NO . CR 16 - 0038 - DOC

Plaintiff(s), REDACTED VERDICT FORM

v

SIMON HONG,

Defendant(s)

Case 2:16-cr-00038-DOC Document 84 Filed 10/19/16 Page 2 of 9 Page ID #:643

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8 UNITED STATES DISTRICT COURT

9 FOR THE CENTRAL DISTRICT OF CALIFORNIA

10 ITED STATES OF AMERICA, No. SA CR 16-0038-DOC

11 Plaintiff, VERDICT FORM

12 v.

13 SIMON HONG,

14 Aka "Seong Wook Hong"

15 Defendant.

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Case 2:16-cr-00038-DOC Document 84 Filed 10/19/16 Page 3 of 9 Page ID #:644

1 COUNT ONE

2 We, the jury in the above- captioned case, unanimously find the

3 defendant SIMON HONG:

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GUILTY

NOT GUILTY

as to Count One, charging Health Care Fraud in violation of 18

u.s.c. § 1347, relating to claim number ending in x6380 submitted on

or about April 12, 2011.

COUNT TWO

We, the jury in the above-captioned case, unanimously find the

defendant SIMON HONG,

GUILTY

NOT GUILTY

as to Count Two, charging Health Care Fraud in violation of 18

U.S .C. § 1347, relating to claim number ending in x5060 submitted on

or about June 15, 2011 .

19 COUNT THREE

20 We, the jury in the above-captioned case, unan imously find the


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GUILTY

NOT GUILTY

24 as to Count Three, charging Health Care Fraud in violation of 18

25 U.S.C. § 1347, relating to claim number ending in x3250 submitted on

26 or about July 12, 2011.

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2

ase 2:16-cr-00038-DOC Document 84 Filed 10/19/16 Page 4 of 9 Page ID #:645

1 COUNT FOUR

2 We, the j ury in the above- captioned case, unanimously find the


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GUILTY

NOT GUILTY

6 as to Count Four, charging Health Care Fraud in violation of 18



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10 COUNT FIVE

11 We, the jury in the above-captioned case, unanimously find the


13 GUILTY

14 NOT GUILTY

15 as to Count Five, charging Health Care Fraud in violation of 18



18

19 COUNT SIX



22 GUILTY

23 NOT GUILTY

24 as to Count Six, charging Health Care Fraud in violation of 18


26 or about October 4, 2011.

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3


1 COUNT SEVEN



4 GUILTY

5 NOT GUILTY

6 as t o Coupt Seven, charging Health Care Fraud in violation of 18

7 U.S.C. § 1347, relating to claim number ending i n x2540 submitted on

8 or about March 14, 2012.

9

10 COUNT EIGHT



13 GUILTY

14 NOT GUILTY

15 as to Count Eight, charging Health Care Fraud in violation of 18

16 U.S.C. § 1347, relating to claim number ending in x21SO submitted on

17 or about May 10, 2012.

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19 COUNT NINE



22 GUILTY

23 NOT GUILTY

24 as to Count Nine, charging Receipt of Kickbacks in violation of 42

25 U.S.C. § 1320a-7b(b) (1) (A) on or about March 15, 2011, in the amount

26 of approximately $3,659.17.

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4


1 COUNT TEN



4 GUILTY

5 NOT GUILTY

6 as to Count Ten, charging Receipt of Kickbacks in violation of 42

7 u.s.c. § 1320a-7b{b) (1) (A) on or about April 26, 2011, in the amount


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COUNT ELEVEN


defendant SIMON HONG:

GUILTY

NOT GUILTY

as to Count Eleven, charging Receipt of Kickbacks in violation of 42

U.S.C. § 1320a-7b{b) (1) (A), on or about May 11, 2011, in the amount

of approximate ly $2,184.25 .

COUNT TWELVE



GUILTY

NOT GUILTY

24 as to Count Twelve, charging Receipt of Kickbacks in violation of 42

25 u.s .c. § 1320a- 7b(b) (1) {A), on or about July 26, 2011 , in the amount


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ase 2:16-cr-00038-DOC Document 84 Fi led 10/19/16 Page 7 of 9 Page ID #:648

COUNT T}:{IRTEEN 1

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we, the jury in the above-captioned case, unanimously find the


GUILTY

NOT GUILTY

as to Count Thirteen, charging Receipt of Kickbacks in violation of

42 U.S.C . § 1320a-7b{b) ·(1) {A) , on or c;~.bout October 10, 20 11, in the

amount of approximately $10,119.84.

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10 COUNT FOURTEEN



13 GUILTY

14 NOT GUILTY

15 as to Count Fourteen, charging Receipt of Kickbacks in violation of

16 42 u .s.c. § 1320a-7b{b) (1) (A), on or about January 24, 2012, in the

17 amount of approximately $13,139.73.

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19 COUNT FIFTEEN


21 de!endant SIMON HONG:

22 GUILTY

23 NOT GUILTY

24 as to Count Fifteen, charging Receipt of Kickbacks in violation of

25 42 u.s.c. § 1320a-7b(b) {1) {A), on or about May 24, 2012, in the

26 amount of approximately $4,708.43.

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1 COUNT SIXTEEN



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GUILTY

NOT GUILTY

6 as to Count Sixteen, charging Receipt. of Kickbacks in violation of

7 42 u.s.c. § 1320a- 7b(b) (1) (A) , on or about October 3, 2012 1 in the

8 amount of approximately $12,393" . 71.

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COUNT SEVENTEEN



GUILTY

NOT GUILTY

as to Count Seventeen, charging Receipt of Kickbacks J.n violation of

42 u.s.c. § 1320a-7b(b) (1) (A), on or about June 11, 2013, in the

amount of approximately $6,560.10.

COUNT EIGHTEEN



GUILTY

NOT GUILTY

24 as to Count Eighteen, charging Aggravated Identity Theft in

25 violation of 1028A(a) (1), on or about April 12 1 2011, in relation to

26 beneficiary Bong Oh.

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7


1 COUNT NINETEEN


3 defendant S I MON HONG:

4 GUILTY

5 NOT GUILTY

6 as to Count Nineteen, charging Aggravated Identity Theft in

7 violation of 1028A(a) (1) 1 on or about May 10, 2012, in relation to

8 beneficiary Joung Hee Kim.

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20 DATED: t:i!J::,\ ~ 1 20 1 6 at Santa Ana, California. ~---""-\:)--'---'----

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